After playing the Bulge scenario I noticed the same thing. I carefully moved my troops up on the town only to find not a soul in it left to defend. All the fighting that decided the battle was done at range with big cannons. Adding a little AI to have defenders hide would be a great addition to the game. I did not see one faust the entire campaign from start to end =(
By its self the game has its own merits. Some things need to be tweeked, especially concerning infantry, but on the whole the game is entertaining enough for me to ignore my other games for the short term. I hope the designers keep pushing the limit of what can be done with this engine.